The Inflation Rate Is the

question 64

Multiple Choice

The inflation rate is the

• A)percent increase in the average level of prices over a year.
• B)percent increase in output over a year.
• C)percent increase in the unemployment rate over a year.
• D)price level divided by the level of output.

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Definitions:

Credit Sales

Transactions in which goods or services are provided to a customer with an agreement to pay at a later date.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, illustrating how the revenues are transformed into net income or loss.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Bank Reconciliation

The process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement.